Explanation:The term business can take on two different meanings. The first refers to an entity that operates for commercial, industrial, or professional reasons. The entity generally begins with a concept (the idea) and a name. Extensive market research may be required to determine how feasible it is to turn the idea into a business. Businesses often require business plans before operations begin. A business plan is a formal document that outlines the company's goals and objectives. It also lists the strategies and ways it plans to achieve these goals and objectives to succeed. Business plans are almost always essential when you want to borrow capital in order to begin operations.
Example:A sole proprietorship is a business organization, or lack thereof, where the business owner and the business itself is one entity. For example, if you made some lemonade and sold it at the end of your road, you would be considered a sole proprietorship. No legal documents need to be created for failure to start a sole prop. It starts as soon as you start your business. The main disadvantage of a sole prop is that the owner is not protected with limited liability.
In a nutshell:
- A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
- Businesses can be for-profit entities or non-profit organizations.
- Business types range from limited liability companies, sole proprietorships, corporations, and partnerships.
- There are businesses that run as small operations in a single industry while others are large operations that spread across many industries around the world.
- Apple and Walmart are two examples of well-known, successful businesses.